Section 409A Deferred Compensation: Compliance and Correction Options & the New IRS Audits

Duration: 60 minutes

Imagine this: You need to go into your CEO’s office and say, “Boss, I just found out that you’re subject to a 20% excise tax on your nonqualified deferred compensation.”

This nightmare scenario has become a reality for many because of Internal Revenue Code Section 409A. Learn how to avoid this situation – or correct it, if in fact Section 409A errors have occurred.


Section 409A requires compliance with strict design and operational guidelines. Failure to comply could result in significant federal income tax consequences to your key executives. But the reality is, despite being ten years into the adoption of Section 409A, many employers are still struggling with when it applies and how to comply with its requirements.

Recently, the IRS has begun a new audit initiative and will be aggressively auditing plans subject to Section 409A. It’s important for you to know the details of the new audit project and how to best prepare for an audit of your own plans (hint: audit yourself before the IRS does!)

With plan documentary compliance now required for all nonqualified deferred compensation, ensure your plans and agreements comply with Section 409A. In this 60-minute session you’ll learn how to identify the plans and agreements subject to Section 409A, spot problematic provisions and ensure your plans and agreements are operated in compliance. You’ll also learn how to: prepare a self-audit of your plans, address Section 409A errors and coordinate compliance in the years to come.

LEARNING OBJECTIVES

In this webinar you will learn:

  • How to identify which plans and agreements need to comply with Section 409A
  • Steps to self-audit your plans and how to respond to an IRS audit of your plans
  • What to do if you fall into non-compliance and how to correct Section 409A operational violations
  • The impact of Section 409A on Employment and Severance Agreements and how to structure these agreements to avoid having to comply with the regulations
  • Exemptions from application of 409A for Good Reason terminations
  • Timing of payments: severance pay, nonqualified deferred compensation plans
  • What Section 409A means to equity incentive plans and bonus plans
  • Fair Market Value determinations for private companies (a huge practical issue, with ongoing cost ramifications) 
  • Action items to keep you in compliance

ABOUT THE SPEAKER

John A. Reade, Jr., a partner in the Duane Morris LLP Employee Benefits and Executive Compensation practice group, is recognized as an authority in the area of employee benefits. His background includes: Counseling and representing clients in the area of employee benefits, including executive compensation and severance agreements, qualified and nonqualified plans, health and welfare plans, ERISA litigation, employee benefits issues in corporate transactions, fiduciary related issues involving prohibited transactions and qualified plan advice and representation of clients before the DOL, IRS and PBGC.

John speaks frequently across the country on developments in employee benefits and executive compensation. He is a magna cum laude graduate of Syracuse University College of Law, where he was a member of the Syracuse University Law Review, and a magna cum laude graduate of Syracuse University.

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Participation in the live webinar + Full MP4 Recording + Audio-only MP3 recording. For recordings, choose digital download or CD-ROM by mail.

What You Get With Each Option close

Live Recording

Live Only

Participation in the live upcoming webinar

Recording

Recording Only

Full MP4 recording of webinar, including Q&A. Choose digital download or CD-ROM by mail.

Live and Recording

Live + Recording

Participation in the live webinar + Full MP4 Recording. For recording, choose digital download or CD-ROM by mail.

Event Package

Event Value Pack

Participation in the live webinar + Full MP4 Recording + Audio-only MP3 recording. For recordings, choose digital download or CD-ROM by mail.

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